<a id="pl.1.3"></a><var>1.3</var>of an individual engaged in the business of a mortgage loan origination or <br/>
<a id="pl.1.4"></a><var>1.4</var>the mortgage loan business; providing certain conforming and transitional <br/>
<a id="pl.1.5"></a><var>1.5</var>provisions; appropriating money;amending Minnesota Statutes 2008, sections <br/>
<a id="pl.1.6"></a><var>1.6</var>58.04, subdivision 1; 58.08, by adding a subdivision; 58.09; 58.10, subdivision <br/>
<a id="pl.1.7"></a><var>1.7</var>1; 58.11; Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2; <br/>
<a id="pl.1.8"></a><var>1.8</var>proposing coding for new law as Minnesota Statutes, chapter 58A; repealing <br/>
<a id="pl.1.9"></a><var>1.9</var>Minnesota Statutes 2009 Supplement, section 58.126.<br/>
<a id="pl.1.10"></a><var>1.10</var>BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:<br/>
<br/>
<a id="bill.1.0.0"></a>

<a id="bill.1.1.0"></a><a id="pl.1.13"></a><var>1.13</var>    Section 1. <b>[58A.01] TITLE.</b><br/>
<a id="pl.1.14"></a><var>1.14</var>This chapter may be cited as the "Minnesota Secure and Fair Enforcement for <br/>
<a id="pl.1.15"></a><var>1.15</var>Mortgage Licensing Act of 2010" or "Minnesota S.A.F.E. Mortgage Licensing Act of <br/>
<a id="pl.1.16"></a><var>1.16</var>2010."<br/>
<br/>
<a id="bill.1.2.0"></a><a id="pl.1.17"></a><var>1.17</var>    Sec. 2. <b>[58A.02] DEFINITIONS.</b><br/>
<a id="pl.1.18"></a><var>1.18</var>    Subdivision 1. <b>Application.</b> For purposes of this chapter, the definitions in <br/>
<a id="pl.1.19"></a><var>1.19</var>subdivisions 2 to 15 have the meanings given them.<br/>
<a id="pl.1.20"></a><var>1.20</var>    Subd. 2. <b>Depository institution.</b> "Depository institution" has the meaning given in <br/>
<a id="pl.1.21"></a><var>1.21</var>United States Code, title 12, section 1813, and includes a credit union.<br/>
<a id="pl.1.22"></a><var>1.22</var>    Subd. 3. <b>Federal banking agencies.</b> "Federal banking agencies" means the Board <br/>
<a id="pl.1.23"></a><var>1.23</var>of Governors of the Federal Reserve System, the comptroller of the currency, the director <br/>
<a id="pl.1.24"></a><var>1.24</var>of the Office of Thrift Supervision, the National Credit Union Administration, and the <br/>
<a id="pl.1.25"></a><var>1.25</var>Federal Deposit Insurance Corporation.<br/>
<a id="pl.2.1"></a><var>2.1</var>    Subd. 4. <b>Immediate family member.</b> "Immediate family member" means a spouse, <br/>
<a id="pl.2.2"></a><var>2.2</var>child, sibling, a parent, grandparent, or grandchild. This includes stepparents, stepchildren, <br/>
<a id="pl.2.3"></a><var>2.3</var>stepsiblings, and adoptive relationships.<br/>
<a id="pl.2.4"></a><var>2.4</var>    Subd. 5. <b>Individual.</b> "Individual" means a natural person.<br/>
<a id="pl.2.5"></a><var>2.5</var>    Subd. 6. <b>Loan processor or underwriter.</b> "Loan processor or underwriter" means <br/>
<a id="pl.2.6"></a><var>2.6</var>an individual who performs clerical or support duties as an employee at the direction <br/>
<a id="pl.2.7"></a><var>2.7</var>of and subject to the supervision and instruction of a person licensed or exempt from <br/>
<a id="pl.2.8"></a><var>2.8</var>licensing under chapter 58. For purposes of this subdivision, the term "clerical or support <br/>
<a id="pl.2.9"></a><var>2.9</var>duties" may include after the receipt of an application:<br/>
<a id="pl.2.10"></a><var>2.10</var>(1) the receipt, collection, distribution, and analysis of information common for the <br/>
<a id="pl.2.11"></a><var>2.11</var>processing or underwriting of a residential mortgage loan; and<br/>
<a id="pl.2.12"></a><var>2.12</var>(2) communicating with a consumer to obtain the information necessary for the <br/>
<a id="pl.2.13"></a><var>2.13</var>processing or underwriting of a loan, to the extent that the communication does not include <br/>
<a id="pl.2.14"></a><var>2.14</var>offering or negotiating loan rates or terms, or counseling consumers about residential <br/>
<a id="pl.2.15"></a><var>2.15</var>mortgage loan rates or terms.<br/>
<a id="pl.2.16"></a><var>2.16</var>    Subd. 7. <b>Mortgage loan originator.</b> "Mortgage loan originator":<br/>
<a id="pl.2.17"></a><var>2.17</var>(1) means an individual who for compensation or gain or in the expectation of <br/>
<a id="pl.2.18"></a><var>2.18</var>compensation or gain:<br/>
<a id="pl.2.19"></a><var>2.19</var>(i) takes a residential mortgage loan application; or<br/>
<a id="pl.2.20"></a><var>2.20</var>(ii) offers or negotiates terms of a residential mortgage loan;<br/>
<a id="pl.2.21"></a><var>2.21</var>(2) does not include an individual engaged solely as a loan processor or underwriter <br/>
<a id="pl.2.22"></a><var>2.22</var>except as otherwise provided in section 58A.03, subdivision 3;<br/>
<a id="pl.2.23"></a><var>2.23</var>(3) does not include a person or entity that only performs real estate brokerage <br/>
<a id="pl.2.24"></a><var>2.24</var>activities and is licensed or registered according to Minnesota law, unless the person or <br/>
<a id="pl.2.25"></a><var>2.25</var>entity is compensated by a lender, a mortgage broker, or other mortgage loan originator or <br/>
<a id="pl.2.26"></a><var>2.26</var>by an agent of the lender, mortgage broker, or other mortgage loan originator; and<br/>
<a id="pl.2.27"></a><var>2.27</var>(4) does not include a person or entity solely involved in extensions of credit relating <br/>
<a id="pl.2.28"></a><var>2.28</var>to timeshare plans, as that term is defined in United States Code, title 11, section 101(53D).<br/>
<a id="pl.2.29"></a><var>2.29</var>    Subd. 8. <b>Nationwide Mortgage Licensing System and Registry.</b> "Nationwide <br/>
<a id="pl.2.30"></a><var>2.30</var>Mortgage Licensing System and Registry" means a mortgage licensing system developed <br/>
<a id="pl.2.31"></a><var>2.31</var>and maintained by the Conference of State Bank Supervisors and the American <br/>
<a id="pl.2.32"></a><var>2.32</var>Association of Residential Mortgage Regulators for the licensing and registration of <br/>
<a id="pl.2.33"></a><var>2.33</var>licensed mortgage loan originators.<br/>
<a id="pl.2.34"></a><var>2.34</var>    Subd. 9. <b>Nontraditional mortgage product.</b> "Nontraditional mortgage product" <br/>
<a id="pl.2.35"></a><var>2.35</var>means a mortgage product other than a 30-year fixed rate mortgage loan.<br/>
<a id="pl.3.1"></a><var>3.1</var>    Subd. 10. <b>Person.</b> "Person" means a natural person, corporation, company, limited <br/>
<a id="pl.3.2"></a><var>3.2</var>liability company, partnership, or association.<br/>
<a id="pl.3.3"></a><var>3.3</var>    Subd. 11. <b>Real estate brokerage activity.</b> "Real estate brokerage activity" means <br/>
<a id="pl.3.4"></a><var>3.4</var>an activity that involves offering or providing real estate brokerage services to the public, <br/>
<a id="pl.3.5"></a><var>3.5</var>including:<br/>
<a id="pl.3.6"></a><var>3.6</var>(1) acting as a real estate agent or real estate broker for a buyer, seller, lessor, <br/>
<a id="pl.3.7"></a><var>3.7</var>or lessee of real property;<br/>
<a id="pl.3.8"></a><var>3.8</var>(2) bringing together parties interested in the sale, purchase, lease, rental, or <br/>
<a id="pl.3.9"></a><var>3.9</var>exchange of real property;<br/>
<a id="pl.3.10"></a><var>3.10</var>(3) negotiating, on behalf of a party, a portion of a contract relating to the sale, <br/>
<a id="pl.3.11"></a><var>3.11</var>purchase, lease, rental, or exchange of real property other than in connection with <br/>
<a id="pl.3.12"></a><var>3.12</var>providing financing with respect to the transaction;<br/>
<a id="pl.3.13"></a><var>3.13</var>(4) engaging in an activity for which a person engaged in the activity is required to <br/>
<a id="pl.3.14"></a><var>3.14</var>be registered or licensed as a real estate agent or real estate broker under any applicable <br/>
<a id="pl.3.15"></a><var>3.15</var>law; and<br/>
<a id="pl.3.16"></a><var>3.16</var>(5) offering to engage in any activity, or act in any capacity, described in clause <br/>
<a id="pl.3.17"></a><var>3.17</var>(1), (2), (3), or (4).<br/>
<a id="pl.3.18"></a><var>3.18</var>    Subd. 12. <b>Registered mortgage loan originator.</b> "Registered mortgage loan <br/>
<a id="pl.3.19"></a><var>3.19</var>originator" means an individual who:<br/>
<a id="pl.3.20"></a><var>3.20</var>(1) meets the definition of mortgage loan originator and is an employee of:<br/>
<a id="pl.3.21"></a><var>3.21</var>(i) a depository institution;<br/>
<a id="pl.3.22"></a><var>3.22</var>(ii) a subsidiary that is owned and controlled by a depository institution and <br/>
<a id="pl.3.23"></a><var>3.23</var>regulated by a federal banking agency; or<br/>
<a id="pl.3.24"></a><var>3.24</var>(iii) an institution regulated by the Farm Credit Administration; and<br/>
<a id="pl.3.25"></a><var>3.25</var>(2) is registered with, and maintains a unique identifier through, the Nationwide <br/>
<a id="pl.3.26"></a><var>3.26</var>Mortgage Licensing System and Registry.<br/>
<a id="pl.3.27"></a><var>3.27</var>    Subd. 13. <b>Residential mortgage loan.</b> "Residential mortgage loan" means a loan <br/>
<a id="pl.3.28"></a><var>3.28</var>primarily for personal, family, or household use that is secured by a mortgage, deed of <br/>
<a id="pl.3.29"></a><var>3.29</var>trust, or other equivalent consensual security interest on a dwelling, as defined in United <br/>
<a id="pl.3.30"></a><var>3.30</var>States Code, title 15, section 1602(v), or residential real estate upon which a dwelling is <br/>
<a id="pl.3.31"></a><var>3.31</var>constructed or intended to be constructed.<br/>
<a id="pl.3.32"></a><var>3.32</var>    Subd. 14. <b>Residential real estate.</b> "Residential real estate" means real property <br/>
<a id="pl.3.33"></a><var>3.33</var>located in Minnesota, upon which a dwelling is constructed or is intended to be <br/>
<a id="pl.3.34"></a><var>3.34</var>constructed.<br/>
<a id="pl.4.1"></a><var>4.1</var>    Subd. 15. <b>Unique identifier.</b> "Unique identifier" means a number or other identifier <br/>
<a id="pl.4.2"></a><var>4.2</var>assigned by protocols established by the Nationwide Mortgage Licensing System and <br/>
<a id="pl.4.3"></a><var>4.3</var>Registry.<br/>
<br/>
<a id="bill.1.3.0"></a><a id="pl.4.4"></a><var>4.4</var>    Sec. 3. <b>[58A.03] LICENSE AND REGISTRATION REQUIRED.</b><br/>
<a id="pl.4.5"></a><var>4.5</var>    Subdivision 1. <b>Generally.</b> An individual, unless specifically exempted from this <br/>
<a id="pl.4.6"></a><var>4.6</var>chapter under subdivision 2, shall not engage in the business of a mortgage loan originator <br/>
<a id="pl.4.7"></a><var>4.7</var>with respect to a dwelling located in this state without first obtaining and maintaining a <br/>
<a id="pl.4.8"></a><var>4.8</var>license under this chapter. An individual may not engage in the mortgage loan business <br/>
<a id="pl.4.9"></a><var>4.9</var>unless the individual is employed and supervised by an entity which is either licensed <br/>
<a id="pl.4.10"></a><var>4.10</var>or exempt from licensing under chapter 58. A licensed mortgage loan originator must <br/>
<a id="pl.4.11"></a><var>4.11</var>register with and maintain a valid unique identifier issued by the Nationwide Mortgage <br/>
<a id="pl.4.12"></a><var>4.12</var>Licensing System and Registry.<br/>
<a id="pl.4.13"></a><var>4.13</var>    Subd. 2. <b>Exemptions.</b> The following are exempt from this chapter:<br/>
<a id="pl.4.14"></a><var>4.14</var>(1) a registered mortgage loan originator, when acting for an entity described in <br/>
<a id="pl.4.15"></a><var>4.15</var>section 58A.02, subdivision 12, clause (1);<br/>
<a id="pl.4.16"></a><var>4.16</var>(2) an individual who offers or negotiates terms of a residential mortgage loan with <br/>
<a id="pl.4.17"></a><var>4.17</var>or on behalf of an immediate family member of the individual;<br/>
<a id="pl.4.18"></a><var>4.18</var>(3) an individual who offers or negotiates terms of a residential mortgage loan <br/>
<a id="pl.4.19"></a><var>4.19</var>secured by a dwelling that served as the individual's residence; and<br/>
<a id="pl.4.20"></a><var>4.20</var>(4) a licensed attorney who negotiates the terms of a residential mortgage loan <br/>
<a id="pl.4.21"></a><var>4.21</var>on behalf of a client as an ancillary matter to the attorney's representation of the client, <br/>
<a id="pl.4.22"></a><var>4.22</var>unless the attorney is compensated by a lender, a mortgage broker, or other mortgage <br/>
<a id="pl.4.23"></a><var>4.23</var>loan originator or by any agent of the lender, mortgage broker, or other mortgage loan <br/>
<a id="pl.4.24"></a><var>4.24</var>originator.<br/>
<a id="pl.4.25"></a><var>4.25</var>    Subd. 3. <b>Independent contractor loan processors or underwriters.</b> A loan <br/>
<a id="pl.4.26"></a><var>4.26</var>processor or underwriter who is an independent contractor may not engage in the activities <br/>
<a id="pl.4.27"></a><var>4.27</var>of a loan processor or underwriter unless the independent contractor loan processor <br/>
<a id="pl.4.28"></a><var>4.28</var>or underwriter obtains and maintains a license under subdivision 1. An independent <br/>
<a id="pl.4.29"></a><var>4.29</var>contractor loan processor or underwriter licensed as a mortgage loan originator must have <br/>
<a id="pl.4.30"></a><var>4.30</var>and maintain a valid unique identifier issued by the Nationwide Mortgage Licensing <br/>
<a id="pl.4.31"></a><var>4.31</var>System and Registry.<br/>
<a id="pl.4.32"></a><var>4.32</var><b>EFFECTIVE DATE.</b>In order to facilitate an orderly transition to licensing and <br/>
<a id="pl.4.33"></a><var>4.33</var>minimize disruption in the mortgage marketplace, the effective date for subdivision 1 <br/>
<a id="pl.4.34"></a><var>4.34</var>is July 31, 2010, or a later date approved by the Secretary of the U.S. Department of <br/>
<a id="pl.5.1"></a><var>5.1</var>Housing and Urban Development, under the authority granted in Public Law 110-289, <br/>
<a id="pl.5.2"></a><var>5.2</var>section 1508(a).<br/>
<br/>
<a id="bill.1.4.0"></a><a id="pl.5.3"></a><var>5.3</var>    Sec. 4. <b>[58A.04] STATE LICENSE AND REGISTRATION APPLICATION AND </b><br/>
<a id="pl.5.4"></a><var>5.4</var><b>ISSUANCE.</b><br/>
<a id="pl.5.5"></a><var>5.5</var>    Subdivision 1. <b>Application form.</b> An applicant for a license shall apply in a form <br/>
<a id="pl.5.6"></a><var>5.6</var>as prescribed by the commissioner. The form must contain content as set forth by rule, <br/>
<a id="pl.5.7"></a><var>5.7</var>instruction, or procedure of the commissioner and may be changed or updated as necessary <br/>
<a id="pl.5.8"></a><var>5.8</var>by the commissioner in order to carry out the purposes of this chapter.<br/>
<a id="pl.5.9"></a><var>5.9</var>    Subd. 2. <b>Commissioner may establish relationships or contracts.</b> In order <br/>
<a id="pl.5.10"></a><var>5.10</var>to fulfill the purposes of this chapter, the commissioner is authorized to establish <br/>
<a id="pl.5.11"></a><var>5.11</var>relationships or contracts with the Nationwide Mortgage Licensing System and Registry <br/>
<a id="pl.5.12"></a><var>5.12</var>or other entities designated by the Nationwide Mortgage Licensing System and Registry to <br/>
<a id="pl.5.13"></a><var>5.13</var>collect and maintain records and process transaction fees or other fees related to licensees <br/>
<a id="pl.5.14"></a><var>5.14</var>or other persons subject to this chapter.<br/>
<a id="pl.5.15"></a><var>5.15</var>    Subd. 3. <b>Waive or modify requirements.</b> For the purpose of participating in the <br/>
<a id="pl.5.16"></a><var>5.16</var>Nationwide Mortgage Licensing System and Registry, the commissioner is authorized to <br/>
<a id="pl.5.17"></a><var>5.17</var>waive or modify, in whole or in part, by rule or order, any or all of the requirements of <br/>
<a id="pl.5.18"></a><var>5.18</var>this chapter and to establish new requirements as reasonably necessary to participate in <br/>
<a id="pl.5.19"></a><var>5.19</var>the Nationwide Mortgage Licensing System and Registry.<br/>
<a id="pl.5.20"></a><var>5.20</var>    Subd. 4. <b>Background checks.</b> In connection with an application for licensing as a <br/>
<a id="pl.5.21"></a><var>5.21</var>mortgage loan originator, the applicant shall, at a minimum, furnish to the Nationwide <br/>
<a id="pl.5.22"></a><var>5.22</var>Mortgage Licensing System and Registry information concerning the applicant's identity, <br/>
<a id="pl.5.23"></a><var>5.23</var>including:<br/>
<a id="pl.5.24"></a><var>5.24</var>(1) fingerprints for submission to the Federal Bureau of Investigation, and a <br/>
<a id="pl.5.25"></a><var>5.25</var>governmental agency or entity authorized to receive the information for a state, national, <br/>
<a id="pl.5.26"></a><var>5.26</var>and international criminal history background check; and<br/>
<a id="pl.5.27"></a><var>5.27</var>(2) personal history and experience in a form prescribed by the Nationwide <br/>
<a id="pl.5.28"></a><var>5.28</var>Mortgage Licensing System and Registry, including the submission of authorization for <br/>
<a id="pl.5.29"></a><var>5.29</var>the Nationwide Mortgage Licensing System and Registry and the commissioner to obtain:<br/>
<a id="pl.5.30"></a><var>5.30</var>(i) an independent credit report obtained from a consumer reporting agency <br/>
<a id="pl.5.31"></a><var>5.31</var>described in United States Code, title 15, section 1681a(p); and<br/>
<a id="pl.5.32"></a><var>5.32</var>(ii) information related to administrative, civil, or criminal findings by a <br/>
<a id="pl.5.33"></a><var>5.33</var>governmental jurisdiction.<br/>
<a id="pl.5.34"></a><var>5.34</var>    Subd. 5. <b>Agent for purposes of requesting and distributing criminal </b><br/>
<a id="pl.5.35"></a><var>5.35</var><b>information.</b> For the purposes of this section and in order to reduce the points of <br/>
<a id="pl.6.1"></a><var>6.1</var>contact which the Federal Bureau of Investigation may have to maintain for purposes of <br/>
<a id="pl.6.2"></a><var>6.2</var>subdivision 4, clauses (1) and (2), the commissioner may use the Nationwide Mortgage <br/>
<a id="pl.6.3"></a><var>6.3</var>Licensing System and Registry as a channeling agent for requesting information from and <br/>
<a id="pl.6.4"></a><var>6.4</var>distributing information to the Department of Justice or any governmental agency.<br/>
<a id="pl.6.5"></a><var>6.5</var>    Subd. 6. <b>Agent for purposes of requesting and distributing noncriminal </b><br/>
<a id="pl.6.6"></a><var>6.6</var><b>information.</b> For the purposes of this section and in order to reduce the points of contact <br/>
<a id="pl.6.7"></a><var>6.7</var>which the commissioner may have to maintain for purposes of subdivision 4, clause (2)(i) <br/>
<a id="pl.6.8"></a><var>6.8</var>and (ii), the commissioner may use the Nationwide Mortgage Licensing System and <br/>
<a id="pl.6.9"></a><var>6.9</var>Registry as a channeling agent for requesting and distributing information to and from any <br/>
<a id="pl.6.10"></a><var>6.10</var>source so directed by the commissioner.<br/>
<br/>
<a id="bill.1.5.0"></a><a id="pl.6.11"></a><var>6.11</var>    Sec. 5. <b>[58A.045] TERM OF LICENSE AND FEES.</b><br/>
<a id="pl.6.12"></a><var>6.12</var>    Subdivision 1. <b>Term.</b> Licenses for mortgage loan originators issued under this <br/>
<a id="pl.6.13"></a><var>6.13</var>chapter expire on December 31 and are renewable on January 1 of each year after that date.<br/>
<a id="pl.6.14"></a><var>6.14</var>    Subd. 2. <b>Fees.</b> The following fees must be paid to the commissioner:<br/>
<a id="pl.6.15"></a><var>6.15</var>    (1) for a mortgage loan originator license, $90; and<br/>
<a id="pl.6.16"></a><var>6.16</var>    (2) for a renewal mortgage loan originator license, $50.<br/>
<br/>
<a id="bill.1.6.0"></a><a id="pl.6.17"></a><var>6.17</var>    Sec. 6. <b>[58A.05] ISSUANCE OF LICENSE.</b><br/>
<a id="pl.6.18"></a><var>6.18</var>The commissioner shall not issue a mortgage loan originator license unless the <br/>
<a id="pl.6.19"></a><var>6.19</var>commissioner finds at a minimum, that:<br/>
<a id="pl.6.20"></a><var>6.20</var>(1) the applicant has never had a mortgage loan originator license revoked in a <br/>
<a id="pl.6.21"></a><var>6.21</var>governmental jurisdiction, except that a subsequent formal vacation of a revocation shall <br/>
<a id="pl.6.22"></a><var>6.22</var>not be deemed a revocation;<br/>
<a id="pl.6.23"></a><var>6.23</var>(2) the applicant has not been convicted of, or pled guilty or nolo contendere to, a <br/>
<a id="pl.6.24"></a><var>6.24</var>felony in a domestic, foreign, or military court:<br/>
<a id="pl.6.25"></a><var>6.25</var>(i) during the seven-year period preceding the date of the application for licensing <br/>
<a id="pl.6.26"></a><var>6.26</var>and registration;<br/>
<a id="pl.6.27"></a><var>6.27</var>(ii) at any time preceding the date of application, if the felony involved an act of <br/>
<a id="pl.6.28"></a><var>6.28</var>fraud, dishonesty, or a breach of trust, or money laundering; or<br/>
<a id="pl.6.29"></a><var>6.29</var>(iii) provided that a pardon of a conviction is not a conviction for purposes of this <br/>
<a id="pl.6.30"></a><var>6.30</var>clause;<br/>
<a id="pl.6.31"></a><var>6.31</var>(3) the applicant has demonstrated financial responsibility, character, and general <br/>
<a id="pl.6.32"></a><var>6.32</var>fitness such as to command the confidence of the community and to warrant a <br/>
<a id="pl.6.33"></a><var>6.33</var>determination that the mortgage loan originator will operate honestly, fairly, and efficiently <br/>
<a id="pl.6.34"></a><var>6.34</var>within the purposes of this chapter. For purposes of this chapter, a person has shown that <br/>
<a id="pl.7.1"></a><var>7.1</var>the person is not financially responsible when the person has shown a disregard in the <br/>
<a id="pl.7.2"></a><var>7.2</var>management of the person's own financial condition. A determination that an individual <br/>
<a id="pl.7.3"></a><var>7.3</var>has not shown financial responsibility may include, but is not limited to:<br/>
<a id="pl.7.4"></a><var>7.4</var>(i) current outstanding judgments, except judgments solely as a result of medical <br/>
<a id="pl.7.5"></a><var>7.5</var>expenses;<br/>
<a id="pl.7.6"></a><var>7.6</var>(ii) current outstanding tax liens or other government liens and filings;<br/>
<a id="pl.7.7"></a><var>7.7</var>(iii) foreclosures within the past three years; and<br/>
<a id="pl.7.8"></a><var>7.8</var>(iv) a pattern of seriously delinquent accounts within the past three years;<br/>
<a id="pl.7.9"></a><var>7.9</var>(4) the applicant has completed the prelicensing education requirement described <br/>
<a id="pl.7.10"></a><var>7.10</var>in section 58A.06;<br/>
<a id="pl.7.11"></a><var>7.11</var>(5) the applicant has passed a written test that meets the test requirement described <br/>
<a id="pl.7.12"></a><var>7.12</var>in section 58A.07; and<br/>
<a id="pl.7.13"></a><var>7.13</var>(6) the applicant has met the surety bond requirement as required under section <br/>
<a id="pl.7.14"></a><var>7.14</var>58A.13.<br/>
<br/>
<a id="bill.1.7.0"></a><a id="pl.7.15"></a><var>7.15</var>    Sec. 7. <b>[58A.06] PRELICENSING AND RELICENSING EDUCATION OF </b><br/>
<a id="pl.7.16"></a><var>7.16</var><b>LOAN ORIGINATORS.</b><br/>
<a id="pl.7.17"></a><var>7.17</var>    Subdivision 1. <b>Minimum educational requirements.</b> In order to meet the <br/>
<a id="pl.7.18"></a><var>7.18</var>prelicensing education requirement referred to in section 58A.05, clause (4), a person <br/>
<a id="pl.7.19"></a><var>7.19</var>shall complete at least 20 hours of education approved according to subdivision 2, that <br/>
<a id="pl.7.20"></a><var>7.20</var>includes at least:<br/>
<a id="pl.7.21"></a><var>7.21</var>(1) three hours of federal law and regulations;<br/>
<a id="pl.7.22"></a><var>7.22</var>(2) three hours of ethics, which includes instruction on fraud, consumer protection, <br/>
<a id="pl.7.23"></a><var>7.23</var>and fair lending issues; and<br/>
<a id="pl.7.24"></a><var>7.24</var>(3) two hours of training related to lending standards for the nontraditional mortgage <br/>
<a id="pl.7.25"></a><var>7.25</var>product marketplace.<br/>
<a id="pl.7.26"></a><var>7.26</var>    Subd. 2. <b>Approved educational courses.</b> For purposes of subdivision 1, <br/>
<a id="pl.7.27"></a><var>7.27</var>prelicensing education courses must be reviewed, and approved by the Nationwide <br/>
<a id="pl.7.28"></a><var>7.28</var>Mortgage Licensing System and Registry based upon reasonable standards. Review <br/>
<a id="pl.7.29"></a><var>7.29</var>and approval of a prelicensing education course must include review and approval of <br/>
<a id="pl.7.30"></a><var>7.30</var>the course provider.<br/>
<a id="pl.7.31"></a><var>7.31</var>    Subd. 3. <b>Approval of employer and affiliate educational courses.</b> Nothing in <br/>
<a id="pl.7.32"></a><var>7.32</var>this section precludes a prelicensing education course, as approved by the Nationwide <br/>
<a id="pl.7.33"></a><var>7.33</var>Mortgage Licensing System and Registry, that is provided by the employer of the applicant <br/>
<a id="pl.7.34"></a><var>7.34</var>or an entity that is affiliated with the applicant by an agency contract, or any subsidiary or <br/>
<a id="pl.7.35"></a><var>7.35</var>affiliate of the employer or entity.<br/>
<a id="pl.8.1"></a><var>8.1</var>    Subd. 4. <b>Venue of education.</b> Prelicensing education may be offered in a classroom, <br/>
<a id="pl.8.2"></a><var>8.2</var>online, or by any other means approved by the Nationwide Mortgage Licensing System <br/>
<a id="pl.8.3"></a><var>8.3</var>and Registry.<br/>
<a id="pl.8.4"></a><var>8.4</var>    Subd. 5. <b>Reciprocity of education.</b> The prelicensing education requirements <br/>
<a id="pl.8.5"></a><var>8.5</var>approved by the Nationwide Mortgage Licensing System and Registry in subdivision <br/>
<a id="pl.8.6"></a><var>8.6</var>1 for a state must be accepted as credit toward completion of prelicensing education <br/>
<a id="pl.8.7"></a><var>8.7</var>requirements in Minnesota.<br/>
<a id="pl.8.8"></a><var>8.8</var>    Subd. 6. <b>Relicensing education requirements.</b> A person previously licensed under <br/>
<a id="pl.8.9"></a><var>8.9</var>this chapter after the effective date of this chapter applying to be licensed again must <br/>
<a id="pl.8.10"></a><var>8.10</var>prove that the person has completed all of the continuing education requirements for <br/>
<a id="pl.8.11"></a><var>8.11</var>the year in which the license was last held.<br/>
<br/>
<a id="bill.1.8.0"></a><a id="pl.8.12"></a><var>8.12</var>    Sec. 8. <b>[58A.07] TESTING OF LOAN ORIGINATORS.</b><br/>
<a id="pl.8.13"></a><var>8.13</var>    Subdivision 1. <b>Generally.</b> In order to meet the written test requirement referred to <br/>
<a id="pl.8.14"></a><var>8.14</var>in section 58A.05, clause (5), an individual shall pass, in accordance with the standards <br/>
<a id="pl.8.15"></a><var>8.15</var>established under this section, a qualified written test developed by the Nationwide <br/>
<a id="pl.8.16"></a><var>8.16</var>Mortgage Licensing System and Registry and administered by a test provider approved <br/>
<a id="pl.8.17"></a><var>8.17</var>by the Nationwide Mortgage Licensing System and Registry based upon reasonable <br/>
<a id="pl.8.18"></a><var>8.18</var>standards.<br/>
<a id="pl.8.19"></a><var>8.19</var>    Subd. 2. <b>Qualified test.</b> A written test must not be treated as a qualified written <br/>
<a id="pl.8.20"></a><var>8.20</var>test for purposes of subdivision 1 unless the test adequately measures the applicant's <br/>
<a id="pl.8.21"></a><var>8.21</var>knowledge and comprehension in appropriate subject areas, including:<br/>
<a id="pl.8.22"></a><var>8.22</var>(1) ethics;<br/>
<a id="pl.8.23"></a><var>8.23</var>(2) federal law and regulation pertaining to mortgage origination;<br/>
<a id="pl.8.24"></a><var>8.24</var>(3) state law and rule pertaining to mortgage origination; and<br/>
<a id="pl.8.25"></a><var>8.25</var>(4) federal and state law and rule, including instruction on fraud, consumer <br/>
<a id="pl.8.26"></a><var>8.26</var>protection, the nontraditional mortgage marketplace, and fair lending issues.<br/>
<a id="pl.8.27"></a><var>8.27</var>    Subd. 3. <b>Testing location.</b> Northing in this section prohibits a test provider approved <br/>
<a id="pl.8.28"></a><var>8.28</var>by the Nationwide Mortgage Licensing System and Registry from providing a test at the <br/>
<a id="pl.8.29"></a><var>8.29</var>location of the employer of the applicant or the location of a subsidiary or affiliate of the <br/>
<a id="pl.8.30"></a><var>8.30</var>employer of the applicant, or the location of an entity with which the applicant holds an <br/>
<a id="pl.8.31"></a><var>8.31</var>exclusive arrangement to conduct the business of a mortgage loan originator.<br/>
<a id="pl.8.32"></a><var>8.32</var>    Subd. 4. <b>Minimum competence.</b> (a) An individual is not considered to have <br/>
<a id="pl.8.33"></a><var>8.33</var>passed a qualified written test unless the individual achieves a test score of not less than <br/>
<a id="pl.8.34"></a><var>8.34</var>75 percent correct answers to questions.<br/>
<a id="pl.9.1"></a><var>9.1</var>(b) An individual may retake a test three consecutive times with each consecutive <br/>
<a id="pl.9.2"></a><var>9.2</var>taking occurring at least 30 days after the preceding test.<br/>
<a id="pl.9.3"></a><var>9.3</var>(c) After failing three consecutive tests, an individual shall wait at least six months <br/>
<a id="pl.9.4"></a><var>9.4</var>before taking the test again.<br/>
<a id="pl.9.5"></a><var>9.5</var>(d) A licensed mortgage loan originator who fails to maintain a valid license for a <br/>
<a id="pl.9.6"></a><var>9.6</var>period of five years or longer shall retake the test, not taking into account any time during <br/>
<a id="pl.9.7"></a><var>9.7</var>which the individual is a registered mortgage loan originator.<br/>
<br/>
<a id="bill.1.9.0"></a><a id="pl.9.8"></a><var>9.8</var>    Sec. 9. <b>[58A.08] STANDARDS FOR LICENSE RENEWAL.</b><br/>
<a id="pl.9.9"></a><var>9.9</var>    Subdivision 1. <b>Generally.</b> The minimum standards for license renewal for a <br/>
<a id="pl.9.10"></a><var>9.10</var>mortgage loan originator include that the mortgage loan originator:<br/>
<a id="pl.9.11"></a><var>9.11</var>(1) continues to meet the minimum standards for license issuance under section <br/>
<a id="pl.9.12"></a><var>9.12</var>58A.05;<br/>
<a id="pl.9.13"></a><var>9.13</var>(2) has satisfied the annual continuing education requirements described in section <br/>
<a id="pl.9.14"></a><var>9.14</var>58A.09; and<br/>
<a id="pl.9.15"></a><var>9.15</var>(3) has paid all required fees for renewal of the license.<br/>
<a id="pl.9.16"></a><var>9.16</var>    Subd. 2. <b>Failure to satisfy minimum standards of license renewal.</b> The license of <br/>
<a id="pl.9.17"></a><var>9.17</var>a mortgage loan originator failing to satisfy the minimum standards for license renewal <br/>
<a id="pl.9.18"></a><var>9.18</var>expires. The commissioner may adopt procedures for the reinstatement of expired licenses <br/>
<a id="pl.9.19"></a><var>9.19</var>consistent with the standards established by the Nationwide Mortgage Licensing System <br/>
<a id="pl.9.20"></a><var>9.20</var>and Registry.<br/>
<br/>
<a id="bill.1.10.0"></a><a id="pl.9.21"></a><var>9.21</var>    Sec. 10. <b>[58A.09] CONTINUING EDUCATION FOR MORTGAGE LOAN </b><br/>
<a id="pl.9.22"></a><var>9.22</var><b>ORIGINATORS.</b><br/>
<a id="pl.9.23"></a><var>9.23</var>    Subdivision 1. <b>Generally.</b> In order to meet the annual continuing education <br/>
<a id="pl.9.24"></a><var>9.24</var>requirements referred to in section 58A.08, subdivision 1, clause (2), a licensed mortgage <br/>
<a id="pl.9.25"></a><var>9.25</var>loan originator shall complete at least eight hours of education approved according to <br/>
<a id="pl.9.26"></a><var>9.26</var>subdivision 2 that includes at least:<br/>
<a id="pl.9.27"></a><var>9.27</var>(1) three hours of federal law and regulations;<br/>
<a id="pl.9.28"></a><var>9.28</var>(2) two hours of ethics, which includes instruction on fraud, consumer protection, <br/>
<a id="pl.9.29"></a><var>9.29</var>and fair lending issues; and<br/>
<a id="pl.9.30"></a><var>9.30</var>(3) two hours of training related to lending standards for the nontraditional mortgage <br/>
<a id="pl.9.31"></a><var>9.31</var>product marketplace.<br/>
<a id="pl.9.32"></a><var>9.32</var>    Subd. 2. <b>Approved educational courses.</b> For purposes of subdivision 1, continuing <br/>
<a id="pl.9.33"></a><var>9.33</var>education courses must be reviewed and approved by the Nationwide Mortgage Licensing <br/>
<a id="pl.10.1"></a><var>10.1</var>System and Registry based upon reasonable standards. Review and approval of a <br/>
<a id="pl.10.2"></a><var>10.2</var>continuing education course must include review and approval of the course provider.<br/>
<a id="pl.10.3"></a><var>10.3</var>    Subd. 3. <b>Approval of employer and affiliate educational courses.</b> Nothing in <br/>
<a id="pl.10.4"></a><var>10.4</var>this section precludes an education course, as approved by the Nationwide Mortgage <br/>
<a id="pl.10.5"></a><var>10.5</var>Licensing System and Registry, that is provided by the employer of the mortgage loan <br/>
<a id="pl.10.6"></a><var>10.6</var>originator or an entity that is affiliated with the mortgage loan originator by an agency <br/>
<a id="pl.10.7"></a><var>10.7</var>contract, or a subsidiary or affiliate of the employer or entity.<br/>
<a id="pl.10.8"></a><var>10.8</var>    Subd. 4. <b>Venue of education.</b> Continuing education may be offered either in a <br/>
<a id="pl.10.9"></a><var>10.9</var>classroom, online, or by other means approved by the Nationwide Mortgage Licensing <br/>
<a id="pl.10.10"></a><var>10.10</var>System and Registry.<br/>
<a id="pl.10.11"></a><var>10.11</var>    Subd. 5. <b>Calculation of continuing education credits.</b> A licensed mortgage loan <br/>
<a id="pl.10.12"></a><var>10.12</var>originator:<br/>
<a id="pl.10.13"></a><var>10.13</var>(1) except for subdivision 9 and section 58A.08, subdivision 2, may only receive <br/>
<a id="pl.10.14"></a><var>10.14</var>credit for a continuing education course in the year in which the course is taken; and<br/>
<a id="pl.10.15"></a><var>10.15</var>(2) may not take the same approved course in the same or successive years to meet <br/>
<a id="pl.10.16"></a><var>10.16</var>the annual requirements for continuing education.<br/>
<a id="pl.10.17"></a><var>10.17</var>    Subd. 6. <b>Instructor credit.</b> A licensed mortgage loan originator who is an approved <br/>
<a id="pl.10.18"></a><var>10.18</var>instructor of an approved continuing education course may receive credit for the licensed <br/>
<a id="pl.10.19"></a><var>10.19</var>mortgage loan originator's own annual continuing education requirement at the rate of <br/>
<a id="pl.10.20"></a><var>10.20</var>two hours credit for every one hour taught.<br/>
<a id="pl.10.21"></a><var>10.21</var>    Subd. 7. <b>Reciprocity of education.</b> A person having successfully completed the <br/>
<a id="pl.10.22"></a><var>10.22</var>education requirements approved by the Nationwide Mortgage Licensing System and <br/>
<a id="pl.10.23"></a><var>10.23</var>Registry in subdivision 1 for a state must be accepted as credit toward completion of <br/>
<a id="pl.10.24"></a><var>10.24</var>continuing education requirements in Minnesota.<br/>
<a id="pl.10.25"></a><var>10.25</var>    Subd. 8. <b>Lapse in license.</b> A licensed mortgage loan originator who subsequently <br/>
<a id="pl.10.26"></a><var>10.26</var>becomes unlicensed must complete the continuing education requirements for the last year <br/>
<a id="pl.10.27"></a><var>10.27</var>in which the license was held before a new or renewed license is issued.<br/>
<a id="pl.10.28"></a><var>10.28</var>    Subd. 9. <b>Deficiency.</b> A person meeting the requirements of section 58A.08, <br/>
<a id="pl.10.29"></a><var>10.29</var>subdivision 1, clauses (1) and (3), may make up a deficiency in continuing education as <br/>
<a id="pl.10.30"></a><var>10.30</var>established by rule of the commissioner.<br/>
<br/>
<a id="bill.1.11.0"></a><a id="pl.10.31"></a><var>10.31</var>    Sec. 11. <b>[58A.10] AUTHORITY TO REQUIRE LICENSE.</b><br/>
<a id="pl.10.32"></a><var>10.32</var>In addition to any other duties imposed upon the commissioner by law, the <br/>
<a id="pl.10.33"></a><var>10.33</var>commissioner shall require mortgage loan originators to be licensed and registered <br/>
<a id="pl.10.34"></a><var>10.34</var>through the Nationwide Mortgage Licensing System and Registry. In order to carry out <br/>
<a id="pl.10.35"></a><var>10.35</var>this requirement, the commissioner may participate in the Nationwide Mortgage Licensing <br/>
<a id="pl.11.1"></a><var>11.1</var>System and Registry. For this purpose, the commissioner may establish by rule or order <br/>
<a id="pl.11.2"></a><var>11.2</var>requirements as necessary, including but not limited to:<br/>
<a id="pl.11.3"></a><var>11.3</var>(1) background checks for:<br/>
<a id="pl.11.4"></a><var>11.4</var>(i) criminal history through fingerprint or other databases;<br/>
<a id="pl.11.5"></a><var>11.5</var>(ii) civil or administrative records;<br/>
<a id="pl.11.6"></a><var>11.6</var>(iii) credit history; or<br/>
<a id="pl.11.7"></a><var>11.7</var>(iv) other information as determined necessary by the Nationwide Mortgage <br/>
<a id="pl.11.8"></a><var>11.8</var>Licensing System and Registry;<br/>
<a id="pl.11.9"></a><var>11.9</var>(2) the payment of fees to apply for or renew licenses through the Nationwide <br/>
<a id="pl.11.10"></a><var>11.10</var>Mortgage Licensing System and Registry;<br/>
<a id="pl.11.11"></a><var>11.11</var>(3) the setting or resetting as necessary of renewal or reporting dates; and<br/>
<a id="pl.11.12"></a><var>11.12</var>(4) requirements for amending or surrendering a license or other activities the <br/>
<a id="pl.11.13"></a><var>11.13</var>commissioner considers necessary for participation in the Nationwide Mortgage Licensing <br/>
<a id="pl.11.14"></a><var>11.14</var>System and Registry.<br/>
<br/>
<a id="bill.1.12.0"></a><a id="pl.11.15"></a><var>11.15</var>    Sec. 12. <b>[58A.11] NATIONWIDE MORTGAGE LICENSING SYSTEM AND </b><br/>
<a id="pl.11.16"></a><var>11.16</var><b>REGISTRY INFORMATION CHALLENGE PROCESS.</b><br/>
<a id="pl.11.17"></a><var>11.17</var>The commissioner shall establish a process that allows mortgage loan originators <br/>
<a id="pl.11.18"></a><var>11.18</var>to challenge information entered into the Nationwide Mortgage Licensing System and <br/>
<a id="pl.11.19"></a><var>11.19</var>Registry by the commissioner.<br/>
<br/>
<a id="bill.1.13.0"></a><a id="pl.11.20"></a><var>11.20</var>    Sec. 13. <b>[58A.12] ENFORCEMENT AUTHORITIES, VIOLATIONS, AND </b><br/>
<a id="pl.11.21"></a><var>11.21</var><b>PENALTIES.</b><br/>
<a id="pl.11.22"></a><var>11.22</var>(a) In order to ensure the effective supervision and enforcement of this chapter, the <br/>
<a id="pl.11.23"></a><var>11.23</var>commissioner may, pursuant to chapter 14:<br/>
<a id="pl.11.24"></a><var>11.24</var>(1) deny, suspend, revoke, condition, or decline to renew a license for a violation of <br/>
<a id="pl.11.25"></a><var>11.25</var>this chapter, rules issued under this chapter, or order or directive entered under this chapter;<br/>
<a id="pl.11.26"></a><var>11.26</var>(2) deny, suspend, revoke, condition, or decline to renew a license if an applicant <br/>
<a id="pl.11.27"></a><var>11.27</var>or licensee fails at anytime to meet the requirements of section 58A.05 or 58A.08, or <br/>
<a id="pl.11.28"></a><var>11.28</var>withholds information or makes a material misstatement in an application for a license <br/>
<a id="pl.11.29"></a><var>11.29</var>or renewal of a license;<br/>
<a id="pl.11.30"></a><var>11.30</var>(3) order restitution against persons subject to this chapter for violations of this <br/>
<a id="pl.11.31"></a><var>11.31</var>chapter;<br/>
<a id="pl.11.32"></a><var>11.32</var>(4) impose fines on persons subject to this chapter pursuant to paragraphs (b) <br/>
<a id="pl.11.33"></a><var>11.33</var>to (d); and<br/>
<a id="pl.11.34"></a><var>11.34</var>(5) issue orders or directives under this chapter as follows:<br/>
<a id="pl.12.1"></a><var>12.1</var>(i) order or direct persons subject to this chapter to cease and desist from conducting <br/>
<a id="pl.12.2"></a><var>12.2</var>business, including immediate temporary orders to cease and desist;<br/>
<a id="pl.12.3"></a><var>12.3</var>(ii) order or direct persons subject to this chapter to cease any harmful activities or <br/>
<a id="pl.12.4"></a><var>12.4</var>violations of this chapter, including immediate temporary orders to cease and desist;<br/>
<a id="pl.12.5"></a><var>12.5</var>(iii) enter immediate temporary orders to cease business under a license or interim <br/>
<a id="pl.12.6"></a><var>12.6</var>license issued pursuant to the authority granted under section 58A.03, subdivision 4, if <br/>
<a id="pl.12.7"></a><var>12.7</var>the commissioner determines that the license was erroneously granted or the licensee is <br/>
<a id="pl.12.8"></a><var>12.8</var>currently in violation of this chapter; and<br/>
<a id="pl.12.9"></a><var>12.9</var>(iv) order or direct other affirmative action the commissioner considers necessary.<br/>
<a id="pl.12.10"></a><var>12.10</var>(b) The commissioner may impose a civil penalty on a mortgage loan originator or <br/>
<a id="pl.12.11"></a><var>12.11</var>person subject to this chapter, if the commissioner finds, on the record after notice and <br/>
<a id="pl.12.12"></a><var>12.12</var>opportunity for hearing, that the mortgage loan originator or person subject to this chapter <br/>
<a id="pl.12.13"></a><var>12.13</var>has violated or failed to comply with any requirement of this chapter or any rule prescribed <br/>
<a id="pl.12.14"></a><var>12.14</var>by the commissioner under this chapter or order issued under authority of this chapter.<br/>
<a id="pl.12.15"></a><var>12.15</var>(c) The maximum amount of penalty for each act or omission described in paragraph <br/>
<a id="pl.12.16"></a><var>12.16</var>(b) is $25,000.<br/>
<a id="pl.12.17"></a><var>12.17</var>(d) Each violation or failure to comply with any directive or order of the <br/>
<a id="pl.12.18"></a><var>12.18</var>commissioner is a separate and distinct violation or failure.<br/>
<br/>
<a id="bill.1.14.0"></a><a id="pl.12.19"></a><var>12.19</var>    Sec. 14. <b>[58A.13] SURETY BOND REQUIRED.</b><br/>
<a id="pl.12.20"></a><var>12.20</var>    Subdivision 1. <b>Coverage, form, and rules.</b> (a) Each mortgage loan originator must <br/>
<a id="pl.12.21"></a><var>12.21</var>be covered by a surety bond meeting the requirements of this section. In the event that <br/>
<a id="pl.12.22"></a><var>12.22</var>the mortgage loan originator is an employee or exclusive agent of a person subject to this <br/>
<a id="pl.12.23"></a><var>12.23</var>chapter, the surety bond of the person subject to this chapter can be used in lieu of the <br/>
<a id="pl.12.24"></a><var>12.24</var>mortgage loan originator's surety bond requirement.<br/>
<a id="pl.12.25"></a><var>12.25</var>(b) The surety bond shall provide coverage for each mortgage loan originator in <br/>
<a id="pl.12.26"></a><var>12.26</var>an amount as prescribed in subdivision 2.<br/>
<a id="pl.12.27"></a><var>12.27</var>(c) The surety bond must be in a form as prescribed by the commissioner.<br/>
<a id="pl.12.28"></a><var>12.28</var>    Subd. 2. <b>Penal sum of surety bond.</b> The penal sum of the surety bond must be <br/>
<a id="pl.12.29"></a><var>12.29</var>maintained in an amount that reflects the dollar amount of loans originated as determined <br/>
<a id="pl.12.30"></a><var>12.30</var>by the commissioner.<br/>
<a id="pl.12.31"></a><var>12.31</var>    Subd. 3. <b>Action on bond.</b> When an action is commenced on a licensee's bond the <br/>
<a id="pl.12.32"></a><var>12.32</var>commissioner may require the filing of a new bond.<br/>
<a id="pl.12.33"></a><var>12.33</var>    Subd. 4. <b>New bond.</b> Immediately upon recovery upon any action on the bond <br/>
<a id="pl.12.34"></a><var>12.34</var>the licensee shall file a new bond.<br/>
<br/>
<a id="bill.1.15.0"></a><a id="pl.13.1"></a><var>13.1</var>    Sec. 15. <b>[58A.14] CONFIDENTIALITY.</b><br/>
<a id="pl.13.2"></a><var>13.2</var>    Subdivision 1. <b>Protections.</b> Except as otherwise provided in Public Law 110-289, <br/>
<a id="pl.13.3"></a><var>13.3</var>section 1512, the requirements under chapter 13 or any federal law regarding the privacy <br/>
<a id="pl.13.4"></a><var>13.4</var>or confidentiality of any information or material provided to the Nationwide Mortgage <br/>
<a id="pl.13.5"></a><var>13.5</var>Licensing System and Registry, and any privilege arising under federal or state law, <br/>
<a id="pl.13.6"></a><var>13.6</var>including the rules of any federal or state court, with respect to the information or material, <br/>
<a id="pl.13.7"></a><var>13.7</var>continue to apply to the information or material after the information or material has been <br/>
<a id="pl.13.8"></a><var>13.8</var>disclosed to the Nationwide Mortgage Licensing System and Registry. The information <br/>
<a id="pl.13.9"></a><var>13.9</var>and material may be shared with all state and federal regulatory officials with mortgage <br/>
<a id="pl.13.10"></a><var>13.10</var>industry oversight authority without the loss of privilege or the loss of confidentiality <br/>
<a id="pl.13.11"></a><var>13.11</var>protections provided by chapter 13 or federal law.<br/>
<a id="pl.13.12"></a><var>13.12</var>    Subd. 2. <b>Agreements and sharing arrangements.</b> For purposes of this section, <br/>
<a id="pl.13.13"></a><var>13.13</var>the commissioner is authorized to enter agreements or sharing arrangements with <br/>
<a id="pl.13.14"></a><var>13.14</var>other governmental agencies, the Conference of State Bank Supervisors, the American <br/>
<a id="pl.13.15"></a><var>13.15</var>Association of Residential Mortgage Regulators, or other associations representing <br/>
<a id="pl.13.16"></a><var>13.16</var>governmental agencies as established by rule or order of the commissioner.<br/>
<a id="pl.13.17"></a><var>13.17</var>    Subd. 3. <b>Nonapplicability of certain requirements.</b> Information or material that is <br/>
<a id="pl.13.18"></a><var>13.18</var>subject to a privilege or confidentiality under subdivision 1 is not subject to:<br/>
<a id="pl.13.19"></a><var>13.19</var>(1) disclosure under any federal or state law governing the disclosure to the public of <br/>
<a id="pl.13.20"></a><var>13.20</var>information held by an officer or an agency of the federal government or the respective <br/>
<a id="pl.13.21"></a><var>13.21</var>state; or<br/>
<a id="pl.13.22"></a><var>13.22</var>(2) subpoena or discovery, or admission into evidence, in any private civil action <br/>
<a id="pl.13.23"></a><var>13.23</var>or administrative process, unless with respect to any privilege held by the Nationwide <br/>
<a id="pl.13.24"></a><var>13.24</var>Mortgage Licensing System and Registry with respect to the information or material, <br/>
<a id="pl.13.25"></a><var>13.25</var>the person to whom the information or material pertains waives, in whole or in part, in <br/>
<a id="pl.13.26"></a><var>13.26</var>the discretion of the person, that privilege.<br/>
<a id="pl.13.27"></a><var>13.27</var>    Subd. 4. <b>Coordination with Minnesota Government Data Practices Act.</b> Chapter <br/>
<a id="pl.13.28"></a><var>13.28</var>13 relating to the disclosure of confidential supervisory information or any information or <br/>
<a id="pl.13.29"></a><var>13.29</var>material described in subdivision 1 that is inconsistent with subdivision 1 is superseded by <br/>
<a id="pl.13.30"></a><var>13.30</var>the requirements of this section.<br/>
<a id="pl.13.31"></a><var>13.31</var>    Subd. 5. <b>Public access to information.</b> This section does not apply with respect to <br/>
<a id="pl.13.32"></a><var>13.32</var>the information or material relating to the employment history of, and publicly adjudicated <br/>
<a id="pl.13.33"></a><var>13.33</var>disciplinary and enforcement actions against, mortgage loan originators that are included <br/>
<a id="pl.13.34"></a><var>13.34</var>in the Nationwide Mortgage Licensing System and Registry for access by the public.<br/>
<br/>
<a id="bill.1.16.0"></a><a id="pl.13.35"></a><var>13.35</var>    Sec. 16. <b>[58A.15] INVESTIGATION AND EXAMINATION AUTHORITY.</b><br/>
<a id="pl.14.1"></a><var>14.1</var>    Subdivision 1. <b>Generally.</b> In addition to any authority allowed under this chapter, <br/>
<a id="pl.14.2"></a><var>14.2</var>the commissioner may conduct investigations and examinations according to subdivisions <br/>
<a id="pl.14.3"></a><var>14.3</var>2 to 9.<br/>
<a id="pl.14.4"></a><var>14.4</var>    Subd. 2. <b>Authority to access information.</b> For purposes of initial licensing, license <br/>
<a id="pl.14.5"></a><var>14.5</var>renewal, license suspension, license conditioning, license revocation or termination, or <br/>
<a id="pl.14.6"></a><var>14.6</var>general or specific inquiry or investigation to determine compliance with this chapter, the <br/>
<a id="pl.14.7"></a><var>14.7</var>commissioner may access, receive and use any books, accounts, records, files, documents, <br/>
<a id="pl.14.8"></a><var>14.8</var>information or evidence including but not limited to:<br/>
<a id="pl.14.9"></a><var>14.9</var>(1) criminal, civil, and administrative history information, including nonconviction <br/>
<a id="pl.14.10"></a><var>14.10</var>data;<br/>
<a id="pl.14.11"></a><var>14.11</var>(2) personal history and experience information including independent credit reports <br/>
<a id="pl.14.12"></a><var>14.12</var>obtained from a consumer reporting agency described in United States Code, title 15, <br/>
<a id="pl.14.13"></a><var>14.13</var>section 1681a(p); and<br/>
<a id="pl.14.14"></a><var>14.14</var>(3) any other documents, information, or evidence the commissioner considers <br/>
<a id="pl.14.15"></a><var>14.15</var>relevant to the inquiry or investigation regardless of the location, possession, control, or <br/>
<a id="pl.14.16"></a><var>14.16</var>custody of the documents, information, or evidence.<br/>
<a id="pl.14.17"></a><var>14.17</var>    Subd. 3. <b>Investigation, examination, and subpoena authority.</b> For the purposes <br/>
<a id="pl.14.18"></a><var>14.18</var>of investigating violations or complaints arising under this chapter, or for the purposes of <br/>
<a id="pl.14.19"></a><var>14.19</var>examination, the commissioner may review, investigate, or examine a licensee, individual, <br/>
<a id="pl.14.20"></a><var>14.20</var>or person subject to this chapter, as often as necessary in order to carry out the purposes <br/>
<a id="pl.14.21"></a><var>14.21</var>of this chapter. The commissioner may direct, subpoena, or order the attendance of and <br/>
<a id="pl.14.22"></a><var>14.22</var>examine under oath all persons whose testimony may be required about the loans or the <br/>
<a id="pl.14.23"></a><var>14.23</var>business or subject matter of any such examination or investigation, and may direct, <br/>
<a id="pl.14.24"></a><var>14.24</var>subpoena, or order such person to produce books, accounts, records, files, and any other <br/>
<a id="pl.14.25"></a><var>14.25</var>documents the commissioner considers relevant to the inquiry.<br/>
<a id="pl.14.26"></a><var>14.26</var>    Subd. 4. <b>Availability of books and records.</b> A licensee, individual, or person <br/>
<a id="pl.14.27"></a><var>14.27</var>subject to this chapter shall make available to the commissioner upon request the books <br/>
<a id="pl.14.28"></a><var>14.28</var>and records relating to the operations of the licensee, individual, or person subject to this <br/>
<a id="pl.14.29"></a><var>14.29</var>chapter. The commissioner shall have access to the books and records and interview <br/>
<a id="pl.14.30"></a><var>14.30</var>the officers, principals, mortgage loan originators, employees, independent contractors, <br/>
<a id="pl.14.31"></a><var>14.31</var>agents, and customers of the licensee, individual, or person subject to this chapter <br/>
<a id="pl.14.32"></a><var>14.32</var>concerning the licensee's, individual's, or person's business.<br/>
<a id="pl.14.33"></a><var>14.33</var>    Subd. 5. <b>Reports and other information as directed.</b> A licensee, individual, or <br/>
<a id="pl.14.34"></a><var>14.34</var>person subject to this chapter shall make or compile reports or prepare other information <br/>
<a id="pl.14.35"></a><var>14.35</var>as directed by the commissioner in order to carry out the purposes of this section including <br/>
<a id="pl.14.36"></a><var>14.36</var>but not limited to:<br/>
<a id="pl.15.1"></a><var>15.1</var>(1) accounting compilations;<br/>
<a id="pl.15.2"></a><var>15.2</var>(2) information lists and data concerning loan transactions in a format prescribed <br/>
<a id="pl.15.3"></a><var>15.3</var>by the commissioner; or<br/>
<a id="pl.15.4"></a><var>15.4</var>(3) other information the commissioner considers necessary to carry out the <br/>
<a id="pl.15.5"></a><var>15.5</var>purposes of this section.<br/>
<a id="pl.15.6"></a><var>15.6</var>    Subd. 6. <b>Control access to records.</b> In making an examination or investigation <br/>
<a id="pl.15.7"></a><var>15.7</var>authorized by this chapter, the commissioner may control access to documents and records <br/>
<a id="pl.15.8"></a><var>15.8</var>of the licensee or person under examination or investigation. The commissioner may <br/>
<a id="pl.15.9"></a><var>15.9</var>take possession of the documents and records or place a person in exclusive charge of <br/>
<a id="pl.15.10"></a><var>15.10</var>the documents and records in the place where they are usually kept. During the period of <br/>
<a id="pl.15.11"></a><var>15.11</var>control, no individual or person shall remove or attempt to remove any of the documents <br/>
<a id="pl.15.12"></a><var>15.12</var>and records except pursuant to a court order or with the consent of the commissioner. <br/>
<a id="pl.15.13"></a><var>15.13</var>Unless the commissioner has reasonable grounds to believe the documents or records <br/>
<a id="pl.15.14"></a><var>15.14</var>of the licensee have been, or are at risk of being, altered or destroyed for purposes of <br/>
<a id="pl.15.15"></a><var>15.15</var>concealing a violation of this chapter, the licensee or owner of the documents and records <br/>
<a id="pl.15.16"></a><var>15.16</var>has access to the documents or records as necessary to conduct its ordinary business affairs.<br/>
<a id="pl.15.17"></a><var>15.17</var>    Subd. 7. <b>Additional authority.</b> In order to carry out the purposes of this section, <br/>
<a id="pl.15.18"></a><var>15.18</var>the commissioner may:<br/>
<a id="pl.15.19"></a><var>15.19</var>(1) retain attorneys, accountants, or other professionals and specialists as examiners, <br/>
<a id="pl.15.20"></a><var>15.20</var>auditors, or investigators to conduct or assist in the conduct of examinations or <br/>
<a id="pl.15.21"></a><var>15.21</var>investigations;<br/>
<a id="pl.15.22"></a><var>15.22</var>(2) enter into agreements or relationships with other government officials or <br/>
<a id="pl.15.23"></a><var>15.23</var>regulatory associations in order to improve efficiencies and reduce regulatory burden <br/>
<a id="pl.15.24"></a><var>15.24</var>by sharing resources, standardized or uniform methods or procedures, and documents, <br/>
<a id="pl.15.25"></a><var>15.25</var>records, information, or evidence obtained under this section;<br/>
<a id="pl.15.26"></a><var>15.26</var>(3) use, hire, contract, or employ public or privately available analytical systems, <br/>
<a id="pl.15.27"></a><var>15.27</var>methods, or software to examine or investigate the licensee, individual, or person subject <br/>
<a id="pl.15.28"></a><var>15.28</var>to this chapter;<br/>
<a id="pl.15.29"></a><var>15.29</var>(4) accept and rely on examination or investigation reports made by other <br/>
<a id="pl.15.30"></a><var>15.30</var>government officials, within or without this state; or<br/>
<a id="pl.15.31"></a><var>15.31</var>(5) accept audit reports made by an independent certified public accountant for the <br/>
<a id="pl.15.32"></a><var>15.32</var>licensee, individual, or person subject to this chapter in the course of that part of the <br/>
<a id="pl.15.33"></a><var>15.33</var>examination covering the same general subject matter as the audit and incorporate the <br/>
<a id="pl.15.34"></a><var>15.34</var>audit report in the report of the examination, report of investigation or other writing of <br/>
<a id="pl.15.35"></a><var>15.35</var>the commissioner.<br/>
<a id="pl.16.1"></a><var>16.1</var>    Subd. 8. <b>Effect of authority.</b> The authority of this section remains in effect, <br/>
<a id="pl.16.2"></a><var>16.2</var>whether a licensee, individual, or person subject to this chapter acts or claims to act under <br/>
<a id="pl.16.3"></a><var>16.3</var>any licensing or registration law of this state, or claims to act without such authority.<br/>
<a id="pl.16.4"></a><var>16.4</var>    Subd. 9. <b>Withhold records.</b> A licensee, individual, or person subject to <br/>
<a id="pl.16.5"></a><var>16.5</var>investigation or examination under this section shall not knowingly withhold, abstract, <br/>
<a id="pl.16.6"></a><var>16.6</var>remove, mutilate, destroy, or secrete any books, records, computer records, or other <br/>
<a id="pl.16.7"></a><var>16.7</var>information.<br/>
<br/>
<a id="bill.1.17.0"></a><a id="pl.16.8"></a><var>16.8</var>    Sec. 17. <b>[58A.16] PROHIBITED ACTS AND PRACTICES.</b><br/>
<a id="pl.16.9"></a><var>16.9</var>    Subdivision 1. <b>Generally.</b> It is a violation of this chapter for a person or individual <br/>
<a id="pl.16.10"></a><var>16.10</var>subject to this chapter to:<br/>
<a id="pl.16.11"></a><var>16.11</var>(1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead <br/>
<a id="pl.16.12"></a><var>16.12</var>borrowers or lenders or to defraud any person;<br/>
<a id="pl.16.13"></a><var>16.13</var>(2) engage in any unfair or deceptive practice toward any person;<br/>
<a id="pl.16.14"></a><var>16.14</var>(3) obtain property by fraud or misrepresentation;<br/>
<a id="pl.16.15"></a><var>16.15</var>(4) solicit or enter into a contract with a borrower that provides in substance that the <br/>
<a id="pl.16.16"></a><var>16.16</var>person or individual subject to this chapter may earn a fee or commission through "best <br/>
<a id="pl.16.17"></a><var>16.17</var>efforts" to obtain a loan even though no loan is actually obtained for the borrower;<br/>
<a id="pl.16.18"></a><var>16.18</var>(5) solicit, advertise, or enter into a contract for specific interest rates, points, or <br/>
<a id="pl.16.19"></a><var>16.19</var>other financing terms unless the terms are actually available at the time of soliciting, <br/>
<a id="pl.16.20"></a><var>16.20</var>advertising, or contracting;<br/>
<a id="pl.16.21"></a><var>16.21</var>(6) conduct any business covered by this chapter without holding a valid license as <br/>
<a id="pl.16.22"></a><var>16.22</var>required under this chapter, or assist or aide and abet any person in the conduct of business <br/>
<a id="pl.16.23"></a><var>16.23</var>under this chapter without a valid license as required under this chapter;<br/>
<a id="pl.16.24"></a><var>16.24</var>(7) fail to make disclosures as required by this chapter and any other applicable <br/>
<a id="pl.16.25"></a><var>16.25</var>state or federal law or regulations;<br/>
<a id="pl.16.26"></a><var>16.26</var>(8) fail to comply with this chapter or rules adopted under this chapter or fail <br/>
<a id="pl.16.27"></a><var>16.27</var>to comply with any other state or federal law or regulations applicable to any business <br/>
<a id="pl.16.28"></a><var>16.28</var>authorized or conducted under this chapter;<br/>
<a id="pl.16.29"></a><var>16.29</var>(9) make, in any manner, any false or deceptive statement or representation <br/>
<a id="pl.16.30"></a><var>16.30</var>including, with regard to the rates, points, or other financing terms or conditions for a <br/>
<a id="pl.16.31"></a><var>16.31</var>residential mortgage loan; or engage in bait-and-switch advertising;<br/>
<a id="pl.16.32"></a><var>16.32</var>(10) negligently make a false statement or knowingly and willfully make an omission <br/>
<a id="pl.16.33"></a><var>16.33</var>of material fact in connection with any information or reports filed with a governmental <br/>
<a id="pl.16.34"></a><var>16.34</var>agency or the Nationwide Mortgage Licensing System and Registry or in connection with <br/>
<a id="pl.16.35"></a><var>16.35</var>an investigation conducted by the commissioner or another governmental agency;<br/>
<a id="pl.17.1"></a><var>17.1</var>(11) make a payment, threat, or promise, directly or indirectly, to a person for the <br/>
<a id="pl.17.2"></a><var>17.2</var>purposes of influencing the independent judgment of the person in connection with a <br/>
<a id="pl.17.3"></a><var>17.3</var>residential mortgage loan, or make a payment threat or promise, directly or indirectly, to <br/>
<a id="pl.17.4"></a><var>17.4</var>an appraiser of a property, for the purposes of influencing the independent judgment of the <br/>
<a id="pl.17.5"></a><var>17.5</var>appraiser with respect to the value of the property;<br/>
<a id="pl.17.6"></a><var>17.6</var>(12) collect, charge, attempt to collect or charge, or use or propose an agreement <br/>
<a id="pl.17.7"></a><var>17.7</var>purporting to collect or charge a fee prohibited by this chapter;<br/>
<a id="pl.17.8"></a><var>17.8</var>(13) cause or require a borrower to obtain property insurance coverage in an amount <br/>
<a id="pl.17.9"></a><var>17.9</var>that exceeds the replacement cost of the improvements as established by the property <br/>
<a id="pl.17.10"></a><var>17.10</var>insurer; or<br/>
<a id="pl.17.11"></a><var>17.11</var>(14) fail to truthfully account for money belonging to a party to a residential <br/>
<a id="pl.17.12"></a><var>17.12</var>mortgage loan transaction.<br/>
<a id="pl.17.13"></a><var>17.13</var>    Subd. 2. <b>Loan processor or underwriter activities.</b> An individual engaging solely <br/>
<a id="pl.17.14"></a><var>17.14</var>in loan processor or underwriter activities shall not represent to the public, through <br/>
<a id="pl.17.15"></a><var>17.15</var>advertising or other means of communicating or providing information, including the use <br/>
<a id="pl.17.16"></a><var>17.16</var>of business cards, stationery, brochures, signs, rate lists, or other promotional items, that <br/>
<a id="pl.17.17"></a><var>17.17</var>the individual can or will perform any of the activities of a mortgage loan originator.<br/>
<br/>
<a id="bill.1.18.0"></a><a id="pl.17.18"></a><var>17.18</var>    Sec. 18. <b>[58A.17] MORTGAGE CALL REPORTS.</b><br/>
<a id="pl.17.19"></a><var>17.19</var>A mortgage licensee shall submit to the Nationwide Mortgage Licensing System and <br/>
<a id="pl.17.20"></a><var>17.20</var>Registry reports of condition, which must be in the form and contain the information the <br/>
<a id="pl.17.21"></a><var>17.21</var>Nationwide Mortgage Licensing System and Registry requires.<br/>
<br/>
<a id="bill.1.19.0"></a><a id="pl.17.22"></a><var>17.22</var>    Sec. 19. <b>[58A.18] REPORT TO NATIONWIDE MORTGAGE LICENSING </b><br/>
<a id="pl.17.23"></a><var>17.23</var><b>SYSTEM AND REGISTRY.</b><br/>
<a id="pl.17.24"></a><var>17.24</var>The commissioner shall regularly report violations of this chapter, as well as <br/>
<a id="pl.17.25"></a><var>17.25</var>enforcement actions and other relevant information, to the Nationwide Mortgage <br/>
<a id="pl.17.26"></a><var>17.26</var>Licensing System and Registry subject to the provisions contained in section 58A.14.<br/>
<br/>
<a id="bill.1.20.0"></a><a id="pl.17.27"></a><var>17.27</var>    Sec. 20. <b>[58A.20] UNIQUE IDENTIFIER SHOWN.</b><br/>
<a id="pl.17.28"></a><var>17.28</var>The unique identifier of any person originating a residential mortgage loan shall <br/>
<a id="pl.17.29"></a><var>17.29</var>be clearly shown on all residential mortgage loan application forms, solicitations, or <br/>
<a id="pl.17.30"></a><var>17.30</var>advertisements, including business cards or Web sites, and any other documents as <br/>
<a id="pl.17.31"></a><var>17.31</var>established by rule or order of the commissioner.<br/>
<br/>
<a id="bill.1.21.0"></a><a id="pl.17.32"></a><var>17.32</var>    Sec. 21. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.18.1"></a><var>18.1</var>This article is effective July 31, 2010.<br/>
<br/>
<a id="bill.2.0.0"></a>

<a id="pl.18.4"></a><var>18.4</var><b>MINNESOTA STATUTES, CHAPTER 58</b><br/>

<a id="bill.2.1.0"></a><a id="pl.18.5"></a><var>18.5</var>    Section 1. Minnesota Statutes 2008, section 58.04, subdivision 1, is amended to read:<br/>
<a id="pl.18.6"></a><var>18.6</var>    Subdivision 1. <b>Residential mortgage originator licensing requirements.</b> (a) <br/>
<a id="pl.18.7"></a><var>18.7</var>No person shall act as a residential mortgage originator, or make residential mortgage <br/>
<a id="pl.18.8"></a><var>18.8</var>loans without first obtaining a license from the commissioner according to the licensing <br/>
<a id="pl.18.9"></a><var>18.9</var>procedures provided in this chapter.<br/>
<a id="pl.18.10"></a><var>18.10</var>    (b) A licensee must be either a partnership, limited liability partnership, association, <br/>
<a id="pl.18.11"></a><var>18.11</var>limited liability company, corporation, or other form of business organization, and must <br/>
<a id="pl.18.12"></a><var>18.12</var>have and maintain at all times one of the following: approval as a mortgagee by either the <br/>
<a id="pl.18.13"></a><var>18.13</var>federal Department of Housing and Urban Development or the Federal National Mortgage <br/>
<a id="pl.18.14"></a><var>18.14</var>Association; a minimum net worth, net of intangibles, of at least $250,000; or a surety <br/>
<a id="pl.18.15"></a><var>18.15</var>bond or irrevocable letter of credit in the amount of $50,000 amounts prescribed under <br/>
<a id="pl.18.16"></a><var>18.16</var>section 58.08. Net worth, net of intangibles, must be calculated in accordance with <br/>
<a id="pl.18.17"></a><var>18.17</var>generally accepted accounting principles.<br/>
<a id="pl.18.18"></a><var>18.18</var>    (c) The following persons are exempt from the residential mortgage originator <br/>
<a id="pl.18.19"></a><var>18.19</var>licensing requirements:<br/>
<a id="pl.18.20"></a><var>18.20</var>    (1) a person who is not in the business of making residential mortgage loans and who <br/>
<a id="pl.18.21"></a><var>18.21</var>makes no more than three such loans, with its own funds, during any 12-month period;<br/>
<a id="pl.18.22"></a><var>18.22</var>    (2) a financial institution as defined in section 
         <statute_ref>58.02, subdivision 10</statute_ref>; <br/>
<a id="pl.18.23"></a><var>18.23</var>    (3) an agency of the federal government, or of a state or municipal government;<br/>
<a id="pl.18.24"></a><var>18.24</var>    (4) an employee or employer pension plan making loans only to its participants;<br/>
<a id="pl.18.25"></a><var>18.25</var>    (5) a person acting in a fiduciary capacity, such as a trustee or receiver, as a result of <br/>
<a id="pl.18.26"></a><var>18.26</var>a specific order issued by a court of competent jurisdiction; or<br/>
<a id="pl.18.27"></a><var>18.27</var>    (6) a person exempted by order of the commissioner.<br/>
<br/>
<a id="bill.2.2.0"></a><a id="pl.18.28"></a><var>18.28</var>    Sec. 2. Minnesota Statutes 2009 Supplement, section 58.06, subdivision 2, is amended <br/>
<a id="pl.18.29"></a><var>18.29</var>to read:<br/>
<a id="pl.18.30"></a><var>18.30</var>    Subd. 2. <b>Application contents.</b> (a) The application must contain the name and <br/>
<a id="pl.18.31"></a><var>18.31</var>complete business address or addresses of the license applicant. The license applicant <br/>
<a id="pl.18.32"></a><var>18.32</var>must be a partnership, limited liability partnership, association, limited liability company, <br/>
<a id="pl.18.33"></a><var>18.33</var>corporation, or other form of business organization, and the application must contain the <br/>
<a id="pl.18.34"></a><var>18.34</var>names and complete business addresses of each partner, member, director, and principal <br/>
<a id="pl.19.1"></a><var>19.1</var>officer. The application must also include a description of the activities of the license <br/>
<a id="pl.19.2"></a><var>19.2</var>applicant, in the detail and for the periods the commissioner may require.<br/>
<a id="pl.19.3"></a><var>19.3</var>    (b) A residential mortgage originator applicant must submit one of the following:<br/>
<a id="pl.19.4"></a><var>19.4</var>    (1) evidence which shows, to the commissioner's satisfaction, that either the federal <br/>
<a id="pl.19.5"></a><var>19.5</var>Department of Housing and Urban Development or the Federal National Mortgage <br/>
<a id="pl.19.6"></a><var>19.6</var>Association has approved the residential mortgage originator applicant as a mortgagee;<br/>
<a id="pl.19.7"></a><var>19.7</var>    (2) a surety bond or irrevocable letter of credit in the amount of not less than <br/>
<a id="pl.19.8"></a><var>19.8</var>$50,000 in a form approved by the commissioner, issued by an insurance company or bank <br/>
<a id="pl.19.9"></a><var>19.9</var>authorized to do so in this state. The bond or irrevocable letter of credit must be available <br/>
<a id="pl.19.10"></a><var>19.10</var>for the recovery of expenses, fines, and fees levied by the commissioner under this chapter <br/>
<a id="pl.19.11"></a><var>19.11</var>and for losses incurred by borrowers. The bond or letter of credit must be submitted with <br/>
<a id="pl.19.12"></a><var>19.12</var>the license application, and evidence of continued coverage must be submitted with each <br/>
<a id="pl.19.13"></a><var>19.13</var>renewal. Any change in the bond or letter of credit must be submitted for approval by the <br/>
<a id="pl.19.14"></a><var>19.14</var>commissioner within ten days of its execution; or<br/>
<a id="pl.19.15"></a><var>19.15</var>    (3) a copy of the residential mortgage originator applicant's most recent audited <br/>
<a id="pl.19.16"></a><var>19.16</var>financial statement, including balance sheet, statement of income or loss, statements of <br/>
<a id="pl.19.17"></a><var>19.17</var>changes in shareholder equity, and statement of changes in financial position. Financial <br/>
<a id="pl.19.18"></a><var>19.18</var>statements must be as of a date within 12 months of the date of application. a surety bond <br/>
<a id="pl.19.19"></a><var>19.19</var>that meets the requirements of section 58.08, subdivision 1a.<br/>
<a id="pl.19.20"></a><var>19.20</var>    (c) The application must also include all of the following:<br/>
<a id="pl.19.21"></a><var>19.21</var>    (1) an affirmation under oath that the applicant:<br/>
<a id="pl.19.22"></a><var>19.22</var>    (i) is in compliance with the requirements of section 
         <statute_ref>58.125</statute_ref>;<br/>
<a id="pl.19.23"></a><var>19.23</var>    (ii) will maintain a perpetual roster of individuals employed as residential mortgage <br/>
<a id="pl.19.24"></a><var>19.24</var>originators, including employees and independent contractors, which includes the dates <br/>
<a id="pl.19.25"></a><var>19.25</var>that mandatory testing, initial education, and continuing education were completed. In <br/>
<a id="pl.19.26"></a><var>19.26</var>addition, the roster must be made available to the commissioner on demand, within three <br/>
<a id="pl.19.27"></a><var>19.27</var>business days of the commissioner's request;<br/>
<a id="pl.19.28"></a><var>19.28</var>    (iii) (ii) will advise the commissioner of any material changes to the information <br/>
<a id="pl.19.29"></a><var>19.29</var>submitted in the most recent application within ten days of the change;<br/>
<a id="pl.19.30"></a><var>19.30</var>    (iv) (iii) will advise the commissioner in writing immediately of any bankruptcy <br/>
<a id="pl.19.31"></a><var>19.31</var>petitions filed against or by the applicant or licensee;<br/>
<a id="pl.19.32"></a><var>19.32</var>    (v) (iv) will maintain at all times either a net worth, net of intangibles, of at least <br/>
<a id="pl.19.33"></a><var>19.33</var>$250,000 or a surety bond or irrevocable letter of credit in the amount of at least $50,000 <br/>
<a id="pl.19.34"></a><var>19.34</var>$100,000;<br/>
<a id="pl.19.35"></a><var>19.35</var>    (vi) (v) complies with federal and state tax laws; and<br/>
<a id="pl.20.1"></a><var>20.1</var>    (vii) (vi) complies with sections 
         <statute_ref>345.31</statute_ref> to 
         <statute_ref>345.60</statute_ref>, the Minnesota unclaimed <br/>
<a id="pl.20.2"></a><var>20.2</var>property law; <br/>
<a id="pl.20.3"></a><var>20.3</var>    (2) information as to the mortgage lending, servicing, or brokering experience of the <br/>
<a id="pl.20.4"></a><var>20.4</var>applicant and persons in control of the applicant;<br/>
<a id="pl.20.5"></a><var>20.5</var>    (3) information as to criminal convictions, excluding traffic violations, of persons in <br/>
<a id="pl.20.6"></a><var>20.6</var>control of the license applicant;<br/>
<a id="pl.20.7"></a><var>20.7</var>    (4) whether a court of competent jurisdiction has found that the applicant or persons <br/>
<a id="pl.20.8"></a><var>20.8</var>in control of the applicant have engaged in conduct evidencing gross negligence, fraud, <br/>
<a id="pl.20.9"></a><var>20.9</var>misrepresentation, or deceit in performing an act for which a license is required under <br/>
<a id="pl.20.10"></a><var>20.10</var>this chapter;<br/>
<a id="pl.20.11"></a><var>20.11</var>    (5) whether the applicant or persons in control of the applicant have been the subject <br/>
<a id="pl.20.12"></a><var>20.12</var>of: an order of suspension or revocation, cease and desist order, or injunctive order, or <br/>
<a id="pl.20.13"></a><var>20.13</var>order barring involvement in an industry or profession issued by this or another state or <br/>
<a id="pl.20.14"></a><var>20.14</var>federal regulatory agency or by the Secretary of Housing and Urban Development within <br/>
<a id="pl.20.15"></a><var>20.15</var>the ten-year period immediately preceding submission of the application; and<br/>
<a id="pl.20.16"></a><var>20.16</var>    (6) other information required by the commissioner.<br/>
<br/>
<a id="bill.2.3.0"></a><a id="pl.20.17"></a><var>20.17</var>    Sec. 3. Minnesota Statutes 2008, section 58.08, is amended by adding a subdivision to <br/>
<a id="pl.20.18"></a><var>20.18</var>read:<br/>
<a id="pl.20.19"></a><var>20.19</var>    Subd. 1a. <b>Residential mortgage originators.</b> (a) An applicant for a residential <br/>
<a id="pl.20.20"></a><var>20.20</var>mortgage originator license must file with the department a surety bond in the amount of <br/>
<a id="pl.20.21"></a><var>20.21</var>$100,000, issued by an insurance company authorized to do so in this state. The bond <br/>
<a id="pl.20.22"></a><var>20.22</var>must cover all mortgage loan originators who are employees or independent agents of <br/>
<a id="pl.20.23"></a><var>20.23</var>the applicant. The bond must be available for the recovery of expenses, fines, and fees <br/>
<a id="pl.20.24"></a><var>20.24</var>levied by the commissioner under this chapter and for losses incurred by borrowers as <br/>
<a id="pl.20.25"></a><var>20.25</var>a result of a licensee's noncompliance with the requirements of this chapter, sections <br/>
<a id="pl.20.26"></a><var>20.26</var>325D.43 to 325D.48, and 325F.67 to 325F.69, or breach of contract relating to activities <br/>
<a id="pl.20.27"></a><var>20.27</var>regulated by this chapter.<br/>
<a id="pl.20.28"></a><var>20.28</var>    (b) The bond must be submitted with the originator's license application and <br/>
<a id="pl.20.29"></a><var>20.29</var>evidence of continued coverage must be submitted with each renewal. Any change in the <br/>
<a id="pl.20.30"></a><var>20.30</var>bond must be submitted for approval by the commissioner, within ten days of its execution. <br/>
<a id="pl.20.31"></a><var>20.31</var>The bond or a substitute bond shall remain in effect during all periods of licensing.<br/>
<a id="pl.20.32"></a><var>20.32</var>    (c) Upon filing of the mortgage call report as required by section 58A.17, a licensee <br/>
<a id="pl.20.33"></a><var>20.33</var>shall maintain or increase its surety bond to reflect the total dollar amount of the closed <br/>
<a id="pl.20.34"></a><var>20.34</var>residential mortgage loans originated in this state in the preceding year according to the <br/>
<a id="pl.20.35"></a><var>20.35</var>table in this paragraph. A licensee may decrease its surety bond according to the table in <br/>
<a id="pl.21.1"></a><var>21.1</var>this paragraph if the surety bond required is less than the amount of the surety bond on <br/>
<a id="pl.21.2"></a><var>21.2</var>file with the department.<br/>
<table>
<col width="50px"/>
<col width=""/>
<col width=""/>
<tr>
<td><a id="pl.21.3"></a><var>21.3</var><br/>
<a id="pl.21.4"></a><var>21.4</var><br/>
</td>
<td align="left">Dollar Amount of Closed Residential <br/>
Mortgage Loans<br/>
</td>
<td align="left" valign="top">Surety Bond Required<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.5"></a><var>21.5</var><br/>
</td>
<td align="left">$0 to $5,000,000<br/>
</td>
<td align="left">$100,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.6"></a><var>21.6</var><br/>
</td>
<td align="left">$5,000,000.01 to $10,000,000<br/>
</td>
<td align="left">$125,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.7"></a><var>21.7</var><br/>
</td>
<td align="left">$10,000,000.01 to $25,000,000<br/>
</td>
<td align="left">$150,000<br/>
</td>
</tr>
<tr>
<td><a id="pl.21.8"></a><var>21.8</var><br/>
</td>
<td align="left">Over $25,000,000<br/>
</td>
<td align="left">$200,000<br/>
</td>
</tr>
</table><a id="pl.21.9"></a><var>21.9</var>    For purposes of this subdivision, "mortgage loan originator" has the meaning given <br/>
<a id="pl.21.10"></a><var>21.10</var>the term in section 58A.02, subdivision 7.<br/>
<br/>
<a id="bill.2.4.0"></a><a id="pl.21.11"></a><var>21.11</var>    Sec. 4. Minnesota Statutes 2008, section 58.09, is amended to read:<br/>
<a id="pl.21.12"></a><var>21.12</var><b>58.09 TERM OF LICENSE.</b><br/>
<a id="pl.21.13"></a><var>21.13</var>    Initial Licenses for residential mortgage originators and residential mortgage <br/>
<a id="pl.21.14"></a><var>21.14</var>servicers issued under this chapter expire on July 31, 2001, December 31 and are <br/>
<a id="pl.21.15"></a><var>21.15</var>renewable on August 1, 2001, and on August 1 January 1 of each odd-numbered year <br/>
<a id="pl.21.16"></a><var>21.16</var>after that date. A new licensee whose license expires less than 12 months from the date <br/>
<a id="pl.21.17"></a><var>21.17</var>of issuance shall pay a fee equal to one-half the applicable initial license fee set forth in <br/>
<a id="pl.21.18"></a><var>21.18</var>section 
<statute_ref>58.10, subdivision 1</statute_ref>, clause (1) or (3).<br/>
<br/>
<a id="bill.2.5.0"></a><a id="pl.21.19"></a><var>21.19</var>    Sec. 5. Minnesota Statutes 2008, section 58.10, subdivision 1, is amended to read:<br/>
<a id="pl.21.20"></a><var>21.20</var>    Subdivision 1. <b>Amounts.</b> The following fees must be paid to the commissioner:<br/>
<a id="pl.21.21"></a><var>21.21</var>    (1) for an initial a residential mortgage originator license, $2,125 $1,000, $50 of <br/>
<a id="pl.21.22"></a><var>21.22</var>which is credited to the consumer education account in the special revenue fund;<br/>
<a id="pl.21.23"></a><var>21.23</var>    (2) for a renewal license, $1,125 $500, $50 of which is credited to the consumer <br/>
<a id="pl.21.24"></a><var>21.24</var>education account in the special revenue fund;<br/>
<a id="pl.21.25"></a><var>21.25</var>    (3) for an initial a residential mortgage servicer's license, $1,000 $500;<br/>
<a id="pl.21.26"></a><var>21.26</var>    (4) for a renewal license, $500 $250; and<br/>
<a id="pl.21.27"></a><var>21.27</var>    (5) for a certificate of exemption, $100.<br/>
<br/>
<a id="bill.2.6.0"></a><a id="pl.21.28"></a><var>21.28</var>    Sec. 6. Minnesota Statutes 2008, section 58.11, is amended to read:<br/>
<a id="pl.21.29"></a><var>21.29</var><b>58.11 LICENSE RENEWAL.</b><br/>
<a id="pl.21.30"></a><var>21.30</var>    Subdivision 1. <b>Term.</b> Licenses are renewable on August 1, 2001, and on August 1 <br/>
<a id="pl.21.31"></a><var>21.31</var>January 1 of each odd-numbered year after that date.<br/>
<a id="pl.21.32"></a><var>21.32</var>    Subd. 2. <b>Timely renewal.</b> (a) A person whose application is properly and timely <br/>
<a id="pl.21.33"></a><var>21.33</var>filed who has not received notice of denial of renewal is considered approved for renewal <br/>
<a id="pl.22.1"></a><var>22.1</var>and the person may continue to transact business as a residential mortgage originator or <br/>
<a id="pl.22.2"></a><var>22.2</var>servicer whether or not the renewed license has been received on or before August January <br/>
<a id="pl.22.3"></a><var>22.3</var>1 of the renewal year. Application for renewal of a license is considered timely filed if <br/>
<a id="pl.22.4"></a><var>22.4</var>received by the commissioner by, or mailed with proper postage and postmarked by, July <br/>
<a id="pl.22.5"></a><var>22.5</var>December 15 of the renewal year. An application for renewal is considered properly filed <br/>
<a id="pl.22.6"></a><var>22.6</var>if made upon forms duly executed and sworn to, accompanied by fees prescribed by this <br/>
<a id="pl.22.7"></a><var>22.7</var>chapter, and containing any information that the commissioner requires.<br/>
<a id="pl.22.8"></a><var>22.8</var>    (b) A person who fails to make a timely application for renewal of a license and <br/>
<a id="pl.22.9"></a><var>22.9</var>who has not received the renewal license as of August January 1 of the renewal year is <br/>
<a id="pl.22.10"></a><var>22.10</var>unlicensed until the renewal license has been issued by the commissioner and is received <br/>
<a id="pl.22.11"></a><var>22.11</var>by the person.<br/>
<a id="pl.22.12"></a><var>22.12</var>    Subd. 3. <b>Contents of renewal application.</b> Application for the renewal of an <br/>
<a id="pl.22.13"></a><var>22.13</var>existing license must contain the information specified in section 
         <statute_ref>58.06, subdivision 2</statute_ref>; <br/>
<a id="pl.22.14"></a><var>22.14</var>however, only the requested information having changed from the most recent prior <br/>
<a id="pl.22.15"></a><var>22.15</var>application need be submitted.  <br/>
<a id="pl.22.16"></a><var>22.16</var>    Subd. 4. <b>Cancellation.</b> A licensee ceasing an activity or activities regulated by this <br/>
<a id="pl.22.17"></a><var>22.17</var>chapter and desiring to no longer be licensed shall so inform the commissioner in writing <br/>
<a id="pl.22.18"></a><var>22.18</var>and, at the same time, surrender the license and all other symbols or indicia of licensure. <br/>
<a id="pl.22.19"></a><var>22.19</var>The licensee shall include a plan for the withdrawal from regulated business, including a <br/>
<a id="pl.22.20"></a><var>22.20</var>timetable for the disposition of the business.<br/>
<br/>
<a id="bill.2.7.0"></a><a id="pl.22.21"></a><var>22.21</var>    Sec. 7. <b>ASSESSMENT.</b><br/>
<a id="pl.22.22"></a><var>22.22</var>    The commissioner may levy a pro rata assessment on institutions licensed under <br/>
<a id="pl.22.23"></a><var>22.23</var>Minnesota Statutes, chapter 58, to recover the costs to the Department of Commerce <br/>
<a id="pl.22.24"></a><var>22.24</var>for administering the licensing and registration requirements of Minnesota Statutes, <br/>
<a id="pl.22.25"></a><var>22.25</var>section 58A.10. The assessment amount must be determined by dividing those costs by <br/>
<a id="pl.22.26"></a><var>22.26</var>the number of licensees.<br/>
<a id="pl.22.27"></a><var>22.27</var>    The commissioner shall levy the assessments and notify each institution of the <br/>
<a id="pl.22.28"></a><var>22.28</var>amount of the assessment being levied by September 30, 2010. The institution shall pay <br/>
<a id="pl.22.29"></a><var>22.29</var>the assessment to the department no later than November 30, 2010. If an institution fails <br/>
<a id="pl.22.30"></a><var>22.30</var>to pay its assessment by this date, its license may be suspended by the commissioner <br/>
<a id="pl.22.31"></a><var>22.31</var>until it is paid in full.<br/>
<a id="pl.22.32"></a><var>22.32</var>    This section expires December 1, 2010.<br/>
<br/>
<a id="bill.2.8.0"></a><a id="pl.22.33"></a><var>22.33</var>    Sec. 8. <b>RESIDENTIAL MORTGAGE ORIGINATORS AND SERVICERS; </b><br/>
<a id="pl.22.34"></a><var>22.34</var><b>TRANSITIONAL LICENSE FEE AND TERMS.</b><br/>
<a id="pl.23.1"></a><var>23.1</var>    A residential mortgage originator licensee and a residential mortgage service <br/>
<a id="pl.23.2"></a><var>23.2</var>licensee operating under a valid license under Minnesota Statutes 2008, chapter 58, <br/>
<a id="pl.23.3"></a><var>23.3</var>with an expiration date of July 31, 2011, shall pay a prorated renewal fee of $200 for a <br/>
<a id="pl.23.4"></a><var>23.4</var>residential mortgage originator, and $100 for a residential mortgage servicer. The prorated <br/>
<a id="pl.23.5"></a><var>23.5</var>license renewal fee must be paid by December 31, 2010, and such payment extends the <br/>
<a id="pl.23.6"></a><var>23.6</var>license term until December 31, 2011.<br/>
<br/>
<a id="bill.2.9.0"></a><a id="pl.23.7"></a><var>23.7</var>    Sec. 9. <b>APPROPRIATION.</b><br/>
<a id="pl.23.8"></a><var>23.8</var>$261,000 in fiscal year 2011 is appropriated from the general fund to the <br/>
<a id="pl.23.9"></a><var>23.9</var>commissioner of commerce for implementing this act. The base appropriation for this <br/>
<a id="pl.23.10"></a><var>23.10</var>program is $138,000 in fiscal year 2012 and $142,000 in fiscal year 2013.<br/>
<br/>
<a id="bill.2.10.0"></a><a id="pl.23.11"></a><var>23.11</var>    Sec. 10. <b> REPEALER.</b><br/>
<a id="pl.23.12"></a><var>23.12</var>Minnesota Statutes 2009 Supplement, section 58.126, is repealed.<br/>
<br/>
<a id="bill.2.11.0"></a><a id="pl.23.13"></a><var>23.13</var>    Sec. 11. <b>EFFECTIVE DATE.</b><br/>
<a id="pl.23.14"></a><var>23.14</var>    This article is effective July 31, 2010.<br/>